Phoenix Tailings and the U.S. Department of War’s Office of Strategic Capital announced a strategic investment for the construction of a rare earth separation and metallization plant. The OSC is conditionally committing $500 million in long-term debt financing toward the construction of the Freedom Facility, anchoring a $1 billion comprehensive financing initiative.
“Supporting domestic processing for critical minerals and rare earths is a key focus for OSC, and the rare earth midstream processing capabilities that Phoenix Tailings represents are key shortage areas that need to be rapidly addressed,” said David A. Lorch, director of the Office of Strategic Capital and senior advisor to Deputy Secretary of War Steve Feinberg. “We are pleased to support Phoenix Tailings in building the company’s Freedom Facility, which will represent an important step in strengthening the full mine-to-magnet supply chain in the United States.”
The Freedom Facility will produce both light and heavy rare earth metals from a diverse range of feedstocks, including concentrates, recycled materials, and secondary sources. This flexibility ensures a fully integrated, agile and resilient supply chain that can rapidly adapt to shifting national security and commercial demands. Further, the facility is designed to utilize domestically controlled technology and intellectual property, mitigating reliance on foreign entities of concern.
“By creating a midstream facility like this, we are empowering virtually every part of the market and rebuilding the rare earth sector as a truly collaborative industry,” said Anthony Balladon, co-founder and chief commercial officer of Phoenix Tailings. “We will ensure end customers get access to the rare earth metals they urgently need, while helping mines and recyclers get up and running by purchasing their output, which would otherwise have to move through other nations. The Freedom Facility is designed to serve as the backbone of a resilient Western rare earth supply chain.”
Initial operations at the Freedom Facility are targeted for 2028.
Source: Phoenix Tailings